Mastergp
Verified member
There are some many problem associated with international trade,but the following can be identified:
Distance:
The cost of freight, whether by road, air or sea is high, as well as the risk of loss or damage since most merchant do not always take insurance policy.
Difference in currency:
Fluctuations in exchange rate may work against the volume of transaction as well as noon availability of foreign currency.
Difference in culture
Plays important roles in showing down the pace of international trade.
- in particular, the choice of symbols, signs and trademarks are limited since the country may not understand them.
-cultural taboos inhibit trade.
Difference in legal system:
Business is not regulated by the law of the importing. Country but by international law. There is need for the knowledge of business men in trade transactions.
Government policy:
Foreign trade can be hindered by political ideologies of different countries. A country can deliberately decide not to trade with another country because of its political difference.
Transportation and communication:
Businessmen and women from different nations especially. African countries find it difficult to contact their partners in other countries because of poor communication and transport facilities.
Distance:
The cost of freight, whether by road, air or sea is high, as well as the risk of loss or damage since most merchant do not always take insurance policy.
Difference in currency:
Fluctuations in exchange rate may work against the volume of transaction as well as noon availability of foreign currency.
Difference in culture
Plays important roles in showing down the pace of international trade.
- in particular, the choice of symbols, signs and trademarks are limited since the country may not understand them.
-cultural taboos inhibit trade.
Difference in legal system:
Business is not regulated by the law of the importing. Country but by international law. There is need for the knowledge of business men in trade transactions.
Government policy:
Foreign trade can be hindered by political ideologies of different countries. A country can deliberately decide not to trade with another country because of its political difference.
Transportation and communication:
Businessmen and women from different nations especially. African countries find it difficult to contact their partners in other countries because of poor communication and transport facilities.
